2007 Minnesota Statutes

CHAPTER 6. STATE AUDITOR

6.01 DUTIES, SEAL.
The state auditor shall superintend and manage the fiscal concerns of the state as required
by law. The state auditor may execute in behalf of the state assignments and satisfactions of
judgments rendered in its favor. The state auditor shall have a seal bearing the words "Seal of
the Auditor of Minnesota" and affix it to all official certificates and conveyances executed
by the state auditor.
History: (65) RL s 33; 1955 c 863 s 1; 1986 c 444

6.02 DEPUTIES, EMPLOYEES.
The state auditor shall appoint a deputy, who may perform all the duties of the office when the
auditor is absent or disabled. The state auditor may employ and at pleasure dismiss two additional
deputies and a private secretary. This section does not increase the complement of the state auditor.
History: (66) RL s 34; 1955 c 863 s 2; 1986 c 444; 1992 c 592 s 1

6.03 [Renumbered 16A.40]

6.04 [Renumbered 16A.41]

6.05 [Renumbered 16A.42]

6.06 [Renumbered 16A.43]

6.07 [Repealed, 1955 c 863 s 22]

6.08 [Renumbered 16A.44]

6.09 [Repealed, 1955 c 863 s 22]

6.10 [Renumbered 16A.45]

6.11 [Renumbered 16A.46]

6.12 [Renumbered 16A.47]

6.13 [Repealed, 1955 c 863 s 22]

6.135 [Repealed, 1947 c 416 s 3]

6.136 [Renumbered 16A.48]

6.137 [Renumbered 16A.49]

6.14 [Repealed, 1955 c 863 s 22]

6.15 [Repealed, 1955 c 863 s 22]

6.16 [Repealed, 1955 c 863 s 22]

6.17 [Repealed, 1955 c 863 s 22]

6.18 [Renumbered 16A.50]

6.19 [Renumbered 16A.51]

6.20 [Renumbered 16A.36]

6.21 [Renumbered 16A.055]

6.211 [Renumbered 16A.52]

6.212 [Renumbered 16A.53]

6.213 [Renumbered 16A.54]

6.214 [Renumbered 16A.55]

6.215 [Obsolete]

6.22 [Renumbered 16A.56]

6.23 [Renumbered 16A.57]

6.24 [Renumbered 16A.58]

6.25 [Renumbered 16A.59]

6.26 [Repealed, 1996 c 310 s 1]

6.27 [Repealed, 1955 c 863 s 22]

6.28 [Renumbered 16A.60]

6.29 [Renumbered 16A.61]

6.291 [Renumbered 16A.62]

6.30 [Renumbered 16A.63]

6.31 [Renumbered 16A.64]

6.32 [Repealed, 1969 c 399 s 51]

6.321 [Repealed, 1969 c 399 s 51]

6.33 [Renumbered 16A.65]

6.34 [Renumbered 16A.66]

6.35 [Renumbered 16A.67]

6.40 [Renumbered 16A.68]

6.42 [Renumbered 16A.69]

6.43 [Renumbered 16A.70]

6.44 [Renumbered 16A.71]

6.45 [Renumbered 16A.72]

6.46 TRANSFER OF POWERS OF PUBLIC EXAMINER TO STATE AUDITOR.
Except as otherwise provided for in Laws 1973, chapter 492, relating to the legislative
auditor, all the powers, duties and responsibilities of the public examiner relating to audits of
cities of all classes, counties, towns, school districts, and other governmental subdivisions or
bodies corporate and politic as contained in sections 6.47 to 6.71, or any other law are hereby
transferred to, vested in, and imposed upon the state auditor.
History: 1973 c 123 art 5 s 7; 1973 c 492 s 7

6.47 ACCOUNTING AND BUDGETING SYSTEMS; INVESTIGATION, FORMS.
The state auditor shall inquire into the accounting and budgeting systems of all local units of
government and shall prescribe suitable systems of accounts and budgeting, and forms, books,
and instructions concerning the same. At the request of any local unit of government the state
auditor may install such systems. The state auditor shall recommend a form for order- and
warrant-checks of all local units of government which shall conform, so far as consistent with
statutory and charter requirements, to approved banking practice in order to facilitate handling of
such instruments by banks and other depositories.
History: (3286-14) 1939 c 431 art 4 s 7; 1953 c 319 s 2; 1973 c 492 s 14

6.48 EXAMINATION OF COUNTIES; COST, FEES.
All the powers and duties conferred and imposed upon the state auditor shall be exercised
and performed by the state auditor in respect to the offices, institutions, public property, and
improvements of several counties of the state. At least once in each year, if funds and personnel
permit, the state auditor may visit, without previous notice, each county and make a thorough
examination of all accounts and records relating to the receipt and disbursement of the public
funds and the custody of the public funds and other property. If the audit is performed by a private
certified public accountant, the state auditor may require additional information from the private
certified public accountant as the state auditor deems in the public interest. The state auditor may
accept the audit or make additional examinations as the state auditor deems to be in the public
interest. The state auditor shall prescribe and install systems of accounts and financial reports that
shall be uniform, so far as practicable, for the same class of offices. A copy of the report of such
examination shall be filed and be subject to public inspection in the office of the state auditor
and another copy in the office of the auditor of the county thus examined. The state auditor may
accept the records and audit, or any part thereof, of the Department of Human Services in lieu of
examination of the county social welfare funds, if such audit has been made within any period
covered by the state auditor's audit of the other records of the county. If any such examination
shall disclose malfeasance, misfeasance, or nonfeasance in any office of such county, such report
shall be filed with the county attorney of the county, and the county attorney shall institute such
civil and criminal proceedings as the law and the protection of the public interests shall require.
The county receiving any examination shall pay to the state general fund, notwithstanding
the provisions of section 16A.125, the total cost and expenses of such examinations, including
the salaries paid to the examiners while actually engaged in making such examination. The
state auditor on deeming it advisable may bill counties, having a population of 200,000 or over,
monthly for services rendered and the officials responsible for approving and paying claims shall
cause said bill to be promptly paid. The general fund shall be credited with all collections made
for any such examinations.
History: (3278) 1913 c 555 s 5; 1931 c 125 s 1; 1931 c 246 s 1; 1945 c 392 s 1; 1949 c 33 s
3; 1951 c 57 s 1; 1953 c 593 s 2; 1955 c 441 s 1; 1969 c 1129 art 10 s 2; 1973 c 492 s 14; 1984 c
654 art 5 s 58; 1986 c 444; 1989 c 335 art 4 s 2; 2001 c 185 s 1; 1Sp2003 c 1 art 2 s 4

6.49 CITIES OF FIRST CLASS.
All powers and duties conferred and imposed upon the state auditor with respect to state
and county officers, institutions, property, and improvements are hereby extended to cities of
the first class. Copies of the written report of the state auditor on the financial condition and
accounts of such city shall be filed in the state auditor's office, with the mayor, city council, and
city comptroller thereof, and with the city commissioners, if such city have such officers. If such
report disclose malfeasance, misfeasance, or nonfeasance in office, copies thereof shall be filed
with the city attorney thereof and with the county attorney of the county in which such city is
located, and these officials of the law shall institute such proceedings, civil or criminal, as the
law and the public interest require.
The state auditor shall bill said cities monthly for services rendered, including any
examination, and the officials responsible for approving and paying claims shall cause said bill
to be promptly paid.
History: (3279) 1913 c 555 s 6; 1949 c 206 s 1; 1973 c 492 s 14; 1986 c 444; 1Sp2003 c
1 art 2 s 5

6.495 EXAMINATION OF FIRE AND POLICE RELIEF ASSOCIATIONS.
    Subdivision 1. Audit and examinations. All powers and duties conferred and imposed
upon the state auditor with respect to state, county, and first-class city officers, institutions, and
property are hereby extended to the various fire and police relief associations in the state. The
state auditor shall annually audit the special and general funds of the relief association or, at the
request of the board of trustees or the municipality, the state auditor may contract for an annual
audit by a certified public accountant. The state auditor may determine that an annual audit is
not necessary, in which case the state auditor shall develop a plan for examination of unaudited
relief associations, and shall prescribe suitable systems of accounts and budgeting, and forms,
books, and instructions concerning the same.
Copies of the written report of the state auditor on the financial condition and accounts of
the relief association shall be filed with the board of trustees of the relief association and the
governing body of the municipality associated with the relief association. If the report discloses
malfeasance, misfeasance, or nonfeasance with regard to relief association funds, copies thereof
shall be filed with the city attorney or county attorney in the city or county in which the relief
association is located, and these officials of the law shall institute proceedings, civil or criminal,
as the law and public interest require.
    Subd. 2.[Repealed, 1987 c 404 s 191]
    Subd. 3. Report to commissioner of revenue. The state auditor shall file with the
commissioner of revenue a financial compliance report certifying for each relief association:
(1) the completion of the annual financial report required pursuant to section 69.051 and the
auditing or certification of those financial reports pursuant to subdivision 1; and
(2) the receipt of any actuarial valuations required pursuant to section 69.77 or 69.773.
History: 1986 c 359 s 2

6.50 CITIES OF SECOND, THIRD, OR FOURTH CLASS.
The state auditor shall have like power and duty to supervise the accounts of all cities not
included in section 6.49. The state auditor may require the financial officers of any city not
included in section 6.49 to send all books, accounts, and vouchers pertaining to the receipt,
disbursement, and custody of its public funds to the Office of the State Auditor for examination.
The state auditor may prescribe and install for such cities systems of accounts and reports,
which shall be uniform for each class of cities and offices. The state auditor may conduct such
examinations of accounts and records as the state auditor may deem the public interest to demand.
The report of such examination shall be filed with the mayor and city council or commission;
and, in case of any violation of law, such report shall be filed with the city attorney thereof and with
the county attorney of the county in which the administrative offices of such city are located, and
these officials of the law shall institute such proceedings as the law and the public interest require.
History: (3280) 1913 c 555 s 7; 1949 c 33 s 4; 1951 c 186 s 1; 1961 c 586 s 2; 1973 c
492 s 14; 1986 c 444

6.51 SCHOOL DISTRICTS, TOWNS, AND STATUTORY CITIES.
All powers and duties of the state auditor herein imposed and conferred with respect to the
supervision, inspection, and examination of books and accounts of cities in section 6.50 are
herewith extended to all school districts, towns, and statutory cities of this state. A copy of the
report of such examination shall be filed, subject to public inspection, with the clerk of the town,
statutory city, or school district receiving such examination, and an additional copy with the
county auditor of the county in which the administrative offices of such town, statutory city, or
school district are located. If such report disclose malfeasance, misfeasance, or nonfeasance in
office, the state auditor shall file such copy with the county attorney of the county in which the
administrative offices of such school district, town, or statutory city are located, and the county
attorney shall institute such proceedings as the law and the public interest require.
History: (3281) 1913 c 555 s 8; 1961 c 586 s 3; 1973 c 123 art 5 s 7; 1973 c 492 s 14

6.515 AUDIT OF FEDERAL MONEY.
The state auditor, in respect to any political subdivision subject to the state auditor's audit
jurisdiction provided by this chapter, is empowered to examine all accounts and records of the
subdivision relating to funds consisting in whole or part of money received from the federal
government or any agency thereof.
History: 1977 c 447 art 7 s 1; 1986 c 444

6.52 TESTIMONIAL POWERS.
In all matters relating to official duties, the state auditor shall have the powers possessed by
courts of law to issue subpoenas and cause them to be served and enforced. All state and county
auditors, treasurers, and other public officials, and their respective deputies and employees, all
officers, directors, and employees of all railway and other companies required by law to pay taxes
to the state upon a gross earnings basis, and all persons having dealings with or knowledge of
the affairs or methods of such companies, and likewise all corporations, firms, and individuals
having business involving the receipt, disbursement, or custody of the public funds shall at all
times afford reasonable facilities for such examinations, make such returns and reports to the
state auditor as required, attend and answer under oath the auditor's lawful inquiries, produce
and exhibit such books, accounts, documents, and property as the auditor may desire to inspect,
and in all things aid the auditor in the performance of duties.
History: (3283) 1913 c 555 s 10; 1973 c 492 s 14; 1986 c 444

6.53 REFUSAL TO ASSIST; PENALTY.
Every person who shall refuse or neglect to obey any lawful direction of the state auditor,
or the auditor's deputy or assistants; withhold any information, book, record, paper, or other
thing called for by the auditor for the purpose of examination; willfully obstruct or mislead the
auditor in the execution of duties; or swear falsely concerning any matter stated under oath, shall
be guilty of a felony, the minimum penalty whereof shall be a fine of $3,000, or imprisonment
in the Minnesota Correctional Facility-Stillwater for one year.
History: (3284) 1913 c 555 s 11; 1973 c 492 s 14; 1979 c 102 s 13; 1984 c 628 art 3 s
11; 1986 c 444

6.54 EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT TO
PETITION.
The registered voters in a county or home rule charter or statutory city or the electors at an
annual or special town meeting of a town may petition the state auditor to examine the books,
records, accounts, and affairs of the county, home rule charter or statutory city, town, or of any
organizational unit, activity, project, enterprise, or fund thereof; and the scope of the examination
may be limited by the petition, but the examination shall cover, at least, all cash received and
disbursed and the transactions relating thereto, provided that the state auditor shall not examine
more than the six latest years preceding the circulation of the petition, unless it appears to the
state auditor during the examination that the audit period should be extended to permit a full
recovery under bonds furnished by public officers or employees, and may if it appears to the
auditor in the public interest confine the period or the scope of audit or both period and scope of
audit, to less than that requested by the petition. In the case of a county or home rule charter or
statutory city, the petition shall be signed by a number of registered voters at least equal to 20
percent of those voting in the last presidential election. The eligible voters of any school district
may petition the state auditor, who shall be subject to the same restrictions regarding the scope
and period of audit, provided that the petition shall be signed by at least ten eligible voters for
each 50 resident pupils in average daily membership during the preceding school year as shown
on the records in the office of the commissioner of education. In the case of school districts, the
petition shall be signed by at least ten eligible voters. At the time it is circulated, every petition
shall contain a statement that the cost of the audit will be borne by the county, city, or school
district as provided by law. Thirty days before the petition is delivered to the state auditor it shall
be presented to the appropriate city or school district clerk and the county auditor. The county
auditor shall determine and certify whether the petition is signed by the required number of
registered voters or eligible voters as the case may be. The certificate shall be conclusive evidence
thereof in any action or proceeding for the recovery of the costs, charges, and expenses of any
examination made pursuant to the petition.
History: (3286-1) 1929 c 259 s 1; 1937 c 415 s 1; 1951 c 185 s 1; 1953 c 689 s 1; 1959 c 518
s 1; 1973 c 71 s 1; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1979 c 82 s 1; 1983 c 314 art 7 s 2; 1984
c 562 s 1; 1987 c 266 art 2 s 1; 1Sp1995 c 3 art 16 s 13; 2003 c 130 s 12; 1Sp2003 c 1 art 2 s 6

6.55 EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF GOVERNING
BODY.
The governing body of any city, town, county or school district, by appropriate resolution
may ask the state auditor to examine the books, records, accounts and affairs of their government,
or of any organizational unit, activity, project, enterprise, or fund thereof; and the state auditor
shall examine the same upon receiving, pursuant to said resolution, a written request signed
by a majority of the members of the governing body; and the governing body of any public
utility commission, or of any public corporation having a body politic and corporate, or of any
instrumentality joint or several of any city, town, county, or school district, may request an
audit of its books, records, accounts and affairs in the same manner; provided that the scope of
the examination may be limited by the request, but such examination shall cover, at least, all
cash received and disbursed and the transactions relating thereto. Such written request shall be
presented to the clerk, or recording officer of such city, town, county, school district, public utility
commission, public corporation, or instrumentality, before being presented to the state auditor,
who shall determine whether the same is signed by a majority of the members of such governing
body and, if found to be so signed, shall certify such fact, and the fact that such resolution was
passed, which certificate shall be conclusive evidence thereof in any action or proceedings for
the recovery of the costs, charges and expenses of any examination made pursuant to such
request. Nothing contained in any of the laws of the state relating to the state auditor, shall be so
construed as to prevent any county, city, town, or school district from employing a certified public
accountant to examine its books, records, accounts, and affairs. For the purposes of this section,
the governing body of a town is the town board.
History: (3286-2) 1929 c 259 s 2; 1943 c 188 s 1; 1953 c 689 s 2; 1959 c 518 s 2; 1973 c
123 art 5 s 7; 1973 c 492 s 14; 1984 c 562 s 2; 1Sp2003 c 1 art 2 s 7

6.551 EXAMINATION OF GRANTEES AND CONTRACTORS OF LOCAL
GOVERNMENTS.
The state auditor may examine the books, records, documents, and accounting procedures
and practices of a contractor or grantee of a local government pursuant to section 16C.05,
subdivision 5 . The examination shall be limited to the books, records, documents, and accounting
procedures and practices that are relevant to the contract or transaction with the local government.
History: 1993 c 315 s 1; 1998 c 386 art 2 s 7

6.552 AUDIT OF COUNTY OR MUNICIPAL HOSPITALS AND COUNTY NURSING
HOMES.
    Subdivision 1. Hospitals. Notwithstanding the provisions of any law to the contrary, any
county or municipal hospital board may employ a certified public accountant to annually audit
and examine the books of said hospital. The report of such examination or audit by such certified
public accountant shall be submitted to the state auditor who shall review such audit report
and may accept such audit or make such additional examinations as the state auditor deems
to be in the public interest.
    Subd. 2. Nursing homes. Notwithstanding the provisions of any law to the contrary, any
county nursing home board may employ a certified public accountant to annually audit and
examine the books of the nursing home. The report of the examination or audit by the certified
public accountant must be submitted to the state auditor. The state auditor shall review the audit
report and may accept the audit or make additional examinations as the state auditor deems
to be in the public interest.
History: 1974 c 489 s 1; 1986 c 444; 2003 c 53 s 1

6.56 COST OF EXAMINATION, PAYMENT.
    Subdivision 1. Definition. As used in this section, "political subdivision" means any county,
home rule charter or statutory city, town, school district, metropolitan or regional agency, or other
special purpose district of the state of Minnesota.
    Subd. 2. Billings by state auditor. Upon the examination of the books, records, accounts,
and affairs of any political subdivision, as provided by law, such political subdivision shall be
liable to the state for the total cost and expenses of such examination, including the salaries paid
to the examiners while actually engaged in making such examination. The state auditor may
bill such political subdivision monthly for service rendered and the officials responsible for
approving and paying claims are authorized to pay said bill promptly. Said payments shall be
without prejudice to any defense against said claims that may exist or be asserted. The general
fund shall be credited with all collections made for any such examinations, including interest
payments made pursuant to subdivision 3.
    Subd. 3. Payment of interest on late payments required. (a) A political subdivision shall
pay interest to the state auditor for undisputed billings when the political subdivision has not paid
the billing within 60 days following receipt of the invoice. A negotiated contract or agreement
between a political subdivision and the state auditor which requires an audit by the political
subdivision before acceptance and payment of the state auditor's invoice shall not be considered
past due until 60 days after the completion of the audit by the political subdivision. Before any
interest payment is made, the state auditor must invoice the political subdivision for the interest.
(b) The rate of interest paid by the political subdivision on undisputed bills not paid within
60 days shall be 1.5 percent per month or any part of a month.
(c) No interest penalties may accrue against a political subdivision that delays payment of a
bill due to a disagreement with the state auditor over the validity of the bill if the dispute is
settled within 60 days after the bill became due. Upon the resolution of the dispute, the political
subdivision must pay the state auditor accrued interest on all proper invoices for which payment
was not received within 60 days following the receipt of the original invoice.
(d) The minimum monthly interest penalty payment that a political subdivision shall pay the
state auditor for the unpaid balance for any one overdue bill equal to or in excess of $100, is $10.
For unpaid balances of less than $100, the political subdivision shall pay the actual penalty due
to the state auditor.
History: (3286-3) 1929 c 259 s 3; 1949 c 33 s 5; 1951 c 187 s 1; 1955 c 870 s 1; 1973 c 123
art 5 s 7; 1973 c 492 s 14; 1986 c 444; 1989 c 335 art 4 s 3; 1993 c 315 s 2

6.57 COST OF EXAMINATION, COLLECTION.
On July first, of each year, the state auditor shall certify all uncollected claims for the
examination of any county, city, town, or school district which have remained unpaid for a period
of three months from the date of such claim. The auditor shall forthwith notify the clerk, or
recording officer, of each county, city, town, or school district against which the state has a claim
that, if the same is not paid, with interest at the rate of six percent per annum from the date of the
claim, within 90 days, the full amount thereof will be certified to the county auditor of the county
having such examination, or to the county auditor for the county or counties in which such city,
town, or school district is situated, for collection by special tax levy, as herein provided. Such
notice shall be served by certified mail and the deposit thereof in the United States mail shall
constitute due and legal service thereof upon the county, city, town, or school district.
History: (3286-4) 1929 c 259 s 4; 1955 c 870 s 1; 1969 c 359 s 2; 1973 c 123 art 5 s 7;
1974 c 406 s 42; 1978 c 674 s 60

6.58 GENERAL FUND.
The general fund shall be used to provide personnel, pay other expenses, and for the
acquisition of equipment used in connection with reimbursable examinations and other duties
pursuant to law. When full-time personnel are not available, the state auditor may contract
with private persons, firms, or corporations for accounting and other technical services.
Notwithstanding any law to the contrary, the acquisition of equipment may include duplicating
equipment to be used in producing the reports issued by the department. All receipts from such
reimbursable examinations shall be deposited in the general fund. The state auditor is directed
to adjust the schedule of charges for such examinations to provide that such charges shall be
sufficient to cover all costs of such examinations and that the aggregate charges collected shall be
sufficient to pay all salaries and other expenses including charges for the use of the equipment
used in connection with such reimbursable examinations and including the cost of contracting for
accounting and other technical services. The schedule of charges shall be based upon an estimate
of the cost of performing reimbursable examinations including, but not limited to, salaries, office
overhead, equipment, authorized contracts, and other expenses. The state auditor may allocate
a proportionate part of the total costs to an hourly or daily charge for each person or class of
persons engaged in the performance of an examination. The schedule of charges shall reflect an
equitable charge for the expenses incurred in the performance of any given examination. The state
auditor shall review and adjust the schedule of charges for such examinations at least annually
and have all schedules of charges approved by the commissioner of finance before they are
adopted so as to ensure that the amount collected shall be sufficient to pay all the costs connected
with such examinations during the fiscal year.
History: 1947 c 634 s 24; 1959 c 518 s 4; 1969 c 399 s 49; 1974 c 149 s 1; 1978 c 674 s 1;
1980 c 431 s 1; 1986 c 444; 1989 c 335 art 4 s 4

6.582 PERSONNEL PLAN.
Notwithstanding any law to the contrary, the state auditor shall develop and implement for
nonclerical positions in the Office of the State Auditor a personnel recruitment and hiring plan.
The plan shall be approved by the commissioner of employee relations before becoming effective.
History: 1980 c 431 s 2; 1982 c 560 s 2

6.59 CLAIM OF STATE FOR COST OF EXAMINATION, CONTEST.
On or before September first following service of the notice, any such county, city, town, or
school district may serve notice, in writing, upon the attorney general that it desires to contest
the legality of the state's claim, and the attorney general shall forthwith file with the court
administrator of the district court of the county having such examination, or in which such city,
town, or school district, or major part thereof, is situated, a verified statement of the state's claim,
duly itemized and serve upon the auditor or clerk of such county, city, town, or school district, by
certified mail, a copy of such statement. Such county, city, town, or school district may file with
the court administrator of such district court, within ten days after the service of such statement
upon it, verified objections to the state's claim, and such district court shall thereupon summarily,
in or out of term, hear and determine the amount due the state, if any, for such examination, at a
time and place fixed by the court therefor. The court administrator of court shall certify to the
county auditor of the county having such examination, or to the county auditor of the county or
counties in which such city, town, or school district is situated, the amount so determined by the
court to be due to the state, if any.
History: (3286-5) 1929 c 259 s 5; 1955 c 870 s 1; 1969 c 359 s 3; 1973 c 123 art 5 s
7; 1978 c 674 s 60; 1Sp1986 c 3 art 1 s 82

6.60 STATE AUDITOR, CERTIFICATION OF AMOUNTS DUE.
On October first, of each year, the state auditor shall certify the respective amounts due the
state from the various counties, cities, towns, and school districts, including interest computed
to July first, following, to the county auditor of the county having such examination, or to the
county auditor of the county in which any such city, town, or school district is, in whole or in part,
situated. The county auditor, upon receiving a certificate from the state auditor, or a certificate
from the court administrator, as provided in section 6.59, shall include the amount of the state's
claim, with 25 percent added, in the tax levy for general revenue purposes of the county or
municipality liable therefor, and such additional levy shall not be within any limitation imposed
by law upon the amount of taxes which may be levied for revenue purposes. Upon completion of
the June tax settlement following such levy the county treasurer shall deduct from the amount
apportioned to the county or municipality for general revenue purposes, the amount due the state,
including interest, and remit the same to the commissioner of finance.
History: (3286-6) 1929 c 259 s 6; 1955 c 870 s 1; 1969 c 359 s 4; 1973 c 123 art 5 s 7;
1974 c 406 s 43; 1Sp1986 c 3 art 1 s 82; 2003 c 112 art 2 s 50

6.61 SUBJECT TO PRIOR ENACTMENT OF LAWS.
Subject to the provisions of Laws 1939, chapter 431, the state auditor shall have and
exercise all the rights, powers, and duties conferred upon the former public examiner by Mason's
Minnesota Statutes of 1927, sections 3274, 3275, 3276, 3277, 3279, 3280, 3281, 3282, 3283,
3284, and 3286, and the 1938 Supplement to Mason's Minnesota Statutes of 1927, sections 3278,
3286-1, 3286-2, 3286-3, 3286-4, 3286-5, 3286-6, and 3286-7, and acts amendatory thereof or
supplementary thereto, and all the provisions thereof shall apply to and govern all matters therein
specified respecting the Office and Department of the State Auditor, except that any limitations
therein contained as to the number of employees to be appointed by the state auditor shall not
apply. The state auditor shall account separately for all of the charges, receipts, and disbursements
of the Department of the State Auditor pertaining to the examining and auditing of all school
districts, towns and cities for which charges are made, and after allocating to the expense thereof
a proper pro rata share of the administrative expense, such functions of the Department of the
State Auditor shall be sustained, so far as practicable, by the funds collected therefor from such
political subdivisions as otherwise provided by law.
History: (3286-15) 1939 c 431 art 4 s 8; 1973 c 123 art 5 s 7; 1973 c 492 s 14

6.62 POSTAUDIT; TAX LEVY.
    Subdivision 1. Levy of tax. Counties, cities and towns are authorized, if necessary, to levy
an amount sufficient to pay the expense of a postaudit by the state auditor.
    Subd. 2. Cost of postaudit. The amount of said levy shall be the amount of the claim or
claims submitted by the state auditor for such services or the auditor's estimate of the entire cost,
and said amount shall be certified by the governing body, after the request or petition for the
audit has been filed, to the county auditor, along with amounts requested for other governmental
purposes. If such levy has been made in excess of statutory limitations, and if the request or
petition is withdrawn after the amount of the levy has been certified but the levy cannot be
canceled because it has been spread on the tax lists, the governing body shall cause the proceeds
of such levy to be transferred to the general fund and reduce the succeeding year's levy for general
purposes accordingly. Provided, however, counties, cities, and other governmental units whose
financial affairs are required by statute or charter to be audited at regular intervals may levy
annually or biennially in anticipation of the audit expense, without the presentment of such
claim or estimate by the state auditor.
    Subd. 3. Use of proceeds of levy. The proceeds of said levy shall be set aside and used only
to cover the state auditor's claim.
History: 1951 c 189 s 1; 1953 c 338 s 1; 1959 c 518 s 5; 1973 c 123 art 5 s 7; 1973 c 492 s
14; 1978 c 764 s 1; 1983 c 314 art 7 s 3; 1986 c 444; 1Sp1989 c 1 art 5 s 1; 1Sp1995 c 3 art 1 s 1

6.63 APPLICATION.
The units of government set forth in sections 6.56, 6.57, 6.59, 6.60, and 6.62 shall be
construed, where applicable, to include, in addition to those therein specifically named, public
utility commissions, public corporations, and instrumentalities.
History: 1959 c 518 s 3

6.64 COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC ACCOUNTANT
DEFINED.
There shall be mutual cooperation between the state auditor and public accountants in the
performance of auditing, accounting, and other related services for counties, cities, towns, school
districts, and other public corporations. For the purposes of sections 6.64 to 6.71 the term public
accountant shall have the meaning ascribed to it in section 412.222.
History: 1957 c 631 s 1; 1961 c 560 s 18; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1Sp2003 c
1 art 2 s 8

6.65 MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.
The state auditor shall prescribe minimum procedures and the audit scope for auditing
the books, records, accounts, and affairs of counties and local governments in Minnesota. The
minimum scope for audits of all local governments must include financial and legal compliance
audits. Audits of all school districts must include a determination of compliance with uniform
financial accounting and reporting standards. The state auditor shall promulgate an audit guide
for legal compliance audits, in consultation with representatives of the state auditor, the attorney
general, towns, cities, counties, school districts, and private sector public accountants.
History: 1957 c 631 s 2; 1973 c 492 s 14; 1983 c 301 s 62; 1988 c 629 s 6; 1989 c 67 s 1;
1990 c 562 art 8 s 1; 1993 c 224 art 14 s 1; 2001 c 161 s 1; 1Sp2003 c 1 art 2 s 9

6.66 CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.
Any public accountant may engage in the practice of auditing the books, records, accounts,
and affairs of counties, cities, towns, school districts, and other public corporations which are not
otherwise required by law to be audited exclusively by the state auditor.
History: 1957 c 631 s 3; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1Sp2003 c 1 art 2 s 10

6.67 PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO
MISCONDUCT.
Whenever a public accountant in the course of auditing the books and affairs of a county,
city, town, school district, or other public corporations, shall discover evidence pointing to
nonfeasance, misfeasance, or malfeasance, on the part of an officer or employee in the conduct of
duties and affairs, the public accountant shall promptly make a report of such discovery to the
state auditor and the county attorney of the county in which the governmental unit is situated and
the public accountant shall also furnish a copy of the report of audit upon completion to said
officers. The county attorney shall act on such report in the same manner as required by law for
reports made to the county attorney by the state auditor.
History: 1957 c 631 s 4; 1959 c 518 s 6; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1986 c
444; 1Sp2003 c 1 art 2 s 11

6.68 STATE AUDITOR MAY ASSIST PUBLIC ACCOUNTANT IN AUDIT.
    Subdivision 1. Request to governing body. If in an audit of a county, city, town, school
district, or other public corporation, a public accountant has need of the assistance of the state
auditor, the accountant may obtain such assistance by requesting the governing body of the
governmental unit being examined to request the state auditor to perform such auditing or
investigative services, or both, as the matter and the public interest require.
    Subd. 2. Auditor's report; payment. The state auditor shall work in close cooperation with
the public accountant in rendering the services so requested and the state auditor shall make
such report of findings to the county attorney as is required by law to be made of nonfeasance,
misfeasance, and malfeasance discovered by the state auditor. The governmental unit shall be
liable for the payment of such services so performed by the state auditor in the same manner as if
it had requested the services pursuant to section 6.55.
History: 1957 c 631 s 5; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1986 c 444; 1Sp2003 c 1
art 2 s 12

6.69 INFORMATION FURNISHED PUBLIC ACCOUNTANT BY STATE AUDITOR.
    Subdivision 1. Governmental accounting information. The state auditor, whenever time
and facilities permit, shall furnish information to public accountants, when requested by them to
do so, concerning governmental accounting and auditing principles, practices, and procedures,
and other related matters.
    Subd. 2. Charge for services. The state auditor may charge the actual cost of furnishing
such information and the public accountant shall pay the amount so charged promptly after
receipt of the claim.
History: 1957 c 631 s 6; 1973 c 492 s 14

6.70 ACCESS TO REPORTS.
The state auditor and the public accountants shall have reasonable access to each other's
audit reports, working papers, and audit programs concerning audits made by each of counties,
cities, towns, school districts, and other public corporations.
History: 1957 c 631 s 7; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1Sp2003 c 1 art 2 s 13

6.71 SCOPE OF AUDITOR'S INVESTIGATION.
Whenever the governing body of a county, city, town, or school district shall have requested
a public accountant to make an audit of its books and affairs, and such audit is in progress or has
been completed, and registered voters or electors petition or the governing body requests or both
the state auditor to make an examination covering the same, or part of the same, period, the state
auditor may, in the public interest, limit the scope of the examination to less than that specified
in section 6.54, but the scope shall cover, at least, an investigation of those complaints which
are within the state auditor's powers and duties to investigate.
History: 1957 c 631 s 8; 1959 c 518 s 7; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1986 c
444; 1Sp2003 c 1 art 2 s 14

6.715 CLASSIFICATION OF STATE AUDITOR'S DATA.
    Subdivision 1. Definitions. (a) For purposes of this section, "audit" means an examination,
financial audit, compliance audit, or investigation performed by the state auditor.
(b) The definitions in section 13.02 apply to this section.
    Subd. 2. Classification. Data relating to an audit are protected nonpublic data or confidential
data on individuals, until the final report of the audit has been published or the audit is no longer
being actively pursued. Data that support the conclusions of the report and that the state auditor
reasonably believes will result in litigation are protected nonpublic data or confidential data on
individuals, until the litigation has been completed or is no longer being actively pursued. Data on
individuals that could reasonably be used to determine the identity of an individual supplying data
for an audit are private if the data supplied by the individual were needed for an audit and the
individual would not have provided the data to the state auditor without an assurance that the
individual's identity would remain private, or the state auditor reasonably believes that the subject
would not have provided the data. Data that could reasonably be used to determine the identity of
an individual supplying data pursuant to section 609.456 are private.
    Subd. 3. Law enforcement. Notwithstanding any provision to the contrary in subdivision 2,
chapter 13, or any other statute related to the classification of government data, the state auditor
may share data relating to an audit with appropriate law enforcement agencies, including data
classified as not public.
    Subd. 4. Access to data. It is not a violation of chapter 13 or any other statute related to the
classification of government data for a state agency, statewide system, or political subdivision,
as defined in section 13.02, to provide data or information to the state auditor, including data
classified as not public, for the purpose of an audit or pursuant to section 609.456, subdivision 1.
History: 1993 c 351 s 1; 2002 c 352 s 1,2

6.72 STATE AUDITOR; REPORT TO LEGISLATURE ON VOLUNTEER
FIREFIGHTERS' RELIEF ASSOCIATIONS.
    Subdivision 1. Reporting requirements. (a) Annually, the state auditor shall report to
the legislature on the general financial condition of the various volunteer firefighters' relief
associations in the state as of December 31 of the year preceding the filing of the report.
(b) Two copies of the report shall be filed with the executive director of the Legislative
Commission on Pensions and Retirement and ten copies of the report shall be filed with the
director of the Legislative Reference Library.
    Subd. 2. Contents of report. The report must include for all volunteer firefighters' relief
associations directly associated with the municipal fire departments and all volunteer firefighters'
relief associations subsidiary to independent nonprofit firefighting corporations, the following:
(1) amount of accrued liability,
(2) amount of the assets of the special fund,
(3) amount of surplus or unfunded accrued liability,
(4) funding ratio,
(5) amount of annual accruing liability or normal cost,
(6) amount of annual required contribution to amortize the unfunded accrued liability,
(7) amount of total required contribution,
(8) amount of fire state aid and supplemental fire state aid,
(9) amount of any municipal contributions,
(10) amount of administrative expenses,
(11) amount of service pension disbursements,
(12) amount of other retirement benefit disbursements,
(13) number of active members,
(14) number of retired members,
(15) number of deferred members,
(16) amount of fidelity bond of secretary and treasurer,
(17) amount of lump sum or monthly service pension accrued per year of service credit,
(18) minimum retirement age required for commencement of a service pension,
(19) minimum years of active service credit required for commencement of service pension,
(20) minimum years of active membership credit required for commencement of service
pension, and
(21) type and amount of other retirement benefits.
    Subd. 3. Report format. The report required by this section must be organized in a manner
that the state auditor determines to provide fair representation of the condition of the various
volunteer firefighters' relief associations.
History: 1979 c 201 s 20; 1986 c 359 s 3,26; 2006 c 271 art 13 s 1

6.74 INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.
The state auditor, or a designated agent, shall collect annually from all city, county, and
other local units of government, information as to the assessment of property, collection of
taxes, receipts from licenses and other sources, the expenditure of public funds for all purposes,
borrowing, debts, principal and interest payments on debts, and such other information as may
be needful. The data shall be supplied upon forms prescribed by the state auditor, and all public
officials so called upon shall fill out properly and return promptly all forms so transmitted.
The state auditor or assistants, may examine local records in order to complete or verify the
information.
History: (3286-12) 1939 c 431 art 4 s 5; 1943 c 435 s 1; 1973 c 123 art 5 s 7; 1973 c 492 s
31; 1986 c 444; 1999 c 99 s 5; 1Sp2003 c 1 art 2 s 15

6.745 SUMMARY BUDGET DATA TO STATE AUDITOR.
    Subdivision 1. Cities. Annually, upon adoption of the city budget, the city council of each
home rule charter or statutory city shall forward summary budget information to the Office of the
State Auditor. The summary budget information shall be provided on forms prescribed by the
state auditor. The Office of the State Auditor shall work with representatives of city government
to develop a budget reporting form that conforms with city budgeting practices and provides
the necessary summary budget information to the Office of the State Auditor. The summary
budget data must include separately any net unrealized gains or losses from investments. The
summary budget data shall be provided to the Office of the State Auditor no later than January 31
of each budget year.
    Subd. 2. Counties. Annually, upon adoption of the county budget, the county board shall
forward summary budget information to the Office of the State Auditor. The summary budget
information shall be provided on forms prescribed by the state auditor. The Office of the State
Auditor shall work with representatives of county government to develop a budget reporting form
that conforms with county budgeting practices and provides the necessary summary budget
information to the Office of the State Auditor. The summary budget data must include separately
any net unrealized gains or losses from investments. The summary budget data shall be provided to
the Office of the State Auditor no later than December 31 of the year preceding each budget year.
History: 1993 c 315 s 3; 1995 c 134 s 1; 1996 c 399 art 1 s 1

6.75 ANNUAL REPORT.
The state auditor shall make and file, annually, in the state auditor's office a summary report
of the information collected, with such compilations and analyses and interpretations as may be
deemed helpful. Copies of such report may be made and distributed to interested persons and
governmental units. A copy of the report shall be forwarded to the legislative auditor.
History: (3286-13) 1939 c 431 art 4 s 6; 1945 c 338 s 1; 1973 c 492 s 32; 1986 c 444

6.755 REPORTS TO THE LEGISLATURE.
Section 3.195 applies to the state auditor. For purposes of determining whether members or
employees of the legislature wish to receive reports or publications prepared by the state auditor,
the state auditor may send a brief listing of reports to each member. The state auditor must deliver
reports or publications to the legislature electronically whenever it is cost effective.
History: 2005 c 156 art 2 s 2

6.76 LOCAL GOVERNMENTAL EXPENDITURES FOR LOBBYISTS.
(a) On or before January 31 of each year, all counties, cities, school districts, metropolitan
agencies, regional railroad authorities, and the Metropolitan Council shall report to the state
auditor, on forms prescribed by the auditor, their estimated expenditures paid for the previous
calendar year to a lobbyist as defined in section 10A.01, subdivision 21, except payments to
associations of local governments that are reported under paragraph (b), and to any staff person
not registered as a lobbyist, over 25 percent of whose time is spent during the legislative session
on legislative matters.
(b) Associations of local governments subject to this section shall report annually, on or
before January 31, to the state auditor and the association's members the proportionate amount of
each member's dues spent for lobbying purposes.
History: 1986 c 444; 1Sp1989 c 1 art 3 s 30; 1994 c 628 art 3 s 1; 1997 c 231 art 16
s 1; 1999 c 220 s 50; 2001 c 7 s 2

6.77 [Repealed, 1Sp2003 c 1 art 2 s 136]

6.78 BEST PRACTICES REVIEWS.
The state auditor shall conduct best practices reviews that examine the procedures and
practices used to deliver local government services, determine the methods of local government
service delivery, identify variations in cost and effectiveness, and identify practices to save
money or provide more effective service delivery. The state auditor shall recommend to local
governments service delivery methods and practices to improve the cost-effectiveness of
services. The state auditor shall determine the local government services to be reviewed in
consultation with representatives of the Association of Minnesota Counties, the League of
Minnesota Cities, the Association of Metropolitan Municipalities, the Minnesota Association
of Townships, the Minnesota Municipal Utilities Association, and the Minnesota Association
of School Administrators.
History: 1Sp2003 c 1 art 2 s 16

6.79 STATE MANDATES.
A county, town, school district, or statutory or home rule charter city may file a written
resolution with the state auditor objecting to a state mandate or making recommendations for
reforming a state mandate. The state auditor must list on the state auditor's Web site a list of
all state mandates cited in a resolution under this section, and the name of the unit of local
government citing the mandate.
History: 2005 c 156 art 2 s 3

6.80 RULE AND LAW WAIVER REQUESTS.
    Subdivision 1. Generally. (a) Except as provided in paragraph (b), a local government
unit may request the state auditor to grant a waiver from one or more administrative rules or a
temporary, limited exemption from enforcement of state procedural laws governing delivery of
services by the local government unit. Two or more local government units may submit a joint
application for a waiver or exemption under this section if they propose to cooperate in providing
a service or program that is subject to the rule or law. Before submitting an application to the state
auditor, the governing body of the local government unit must approve, in concept, the proposed
waiver or exemption at a meeting required to be public under chapter 13D. A local government
unit or two or more units acting jointly may apply for a waiver or exemption on behalf of a
nonprofit organization providing services to clients whose costs are paid by the unit or units. A
waiver or exemption granted to a nonprofit organization under this section applies to services
provided to all the organization's clients.
(b) A school district that is granted a variance from rules of the commissioner of education
under section 122A.163, need not apply for a waiver of those rules under this section. A school
district may not seek a waiver of rules under this section if the commissioner of education
has authority to grant a variance to the rules under section 122A.163. This paragraph does
not preclude a school district from being included in a cooperative effort with another local
government unit under this section.
(c) Before petitioning the state auditor's office for an exemption from an administrative rule,
the petitioner must have requested and been denied such an exemption from the appropriate
agency pursuant to sections 14.055 and 14.056.
    Subd. 2. Application. A local government unit requesting a waiver of a rule or exemption
from enforcement of a law under this section shall present a written application to the state
auditor. The application must include:
(1) the name and address of the entity for whom a waiver of a rule or exemption from
enforcement of a law is being requested;
(2) identification of the service or program at issue;
(3) identification of the administrative rule or the law imposing a procedural requirement
with respect to which the waiver or exemption is sought;
(4) a description of the improved service outcome sought, including an explanation of the
effect of the waiver or exemption in accomplishing that outcome, and why that outcome cannot
be accomplished under established rules or laws;
(5) information on the state auditor's office treatment on similar cases;
(6) the name, address, and telephone number of any person, business, or other government
unit the petitioner knows would be adversely affected by the grant of the petition; and
(7) a signed statement as to the accuracy of the facts presented.
A copy of the application must be provided by the requesting local government unit to the
exclusive representative certified under section 179A.12 to represent employees who provide the
service or program affected by the requested waiver or exemption.
    Subd. 3. Review process. (a) Upon receipt of an application from a local government unit,
the state auditor shall review the application. The state auditor shall dismiss an application if the
application proposes a waiver of rules or exemption from enforcement of laws that would result in
due process violations, violations of federal law or the state or federal constitution, or the loss of
services to people who are entitled to them.
(b) The state auditor shall determine whether a law from which an exemption for
enforcement is sought is a procedural law, specifying how a local government unit is to achieve
an outcome, rather than a substantive law prescribing the outcome or otherwise establishing
policy. For the purposes of this section, "procedural law" does not include a statutory notice
requirement. In making the determination, the state auditor shall consider whether the law
specifies such requirements as:
(1) who must deliver a service;
(2) where the service must be delivered;
(3) to whom and in what form reports regarding the service must be made; and
(4) how long or how often the service must be made available to a given recipient.
(c) If the application requests a waiver of a rule or temporary, limited exemptions from
enforcement of a procedural law over which the Metropolitan Council or a metropolitan agency
has jurisdiction, the state auditor shall also transmit a copy of the application to the council or
applicable metropolitan agency, whichever has jurisdiction, for review and comment. The council
or agency shall report its comments to the board within 60 days of the date the application was
transmitted to the council or agency. The council or agency may point out any resources or
technical assistance it may be able to provide a local government unit submitting a request under
this section.
(d) Within 15 days after receipt of the application, the state auditor shall transmit a copy of it
to the commissioner of each agency having jurisdiction over a rule or law from which a waiver or
exemption is sought. The agency may mail a notice that it has received an application for a waiver
or exemption to all persons who have registered with the agency under section 14.14, subdivision
1a , identifying the rule or law from which a waiver or exemption is requested. If no agency has
jurisdiction over the rule or law, the state auditor shall transmit a copy of the application to the
attorney general. The agency shall inform the state auditor of its agreement with or objection to
and grounds for objection to the waiver or exemption request within 60 days of the date when
the application was transmitted to it. An agency's failure to do so is considered agreement to the
waiver or exemption. The state auditor shall decide whether to grant a waiver or exemption at the
end of the 60-day response period. Interested persons may submit written comments to the state
auditor on the waiver or exemption request up to the end of the 60-day response period.
(e) If the exclusive representative of the affected employees of the requesting local
government unit objects to the waiver or exemption request it may inform the state auditor of
the objection to and the grounds for the objection to the waiver or exemption request within 60
days of the receipt of the application.
    Subd. 4. Hearing. If a state agency under subdivision 3, paragraph (d), or the exclusive
representative of the affected employees under subdivision 3, paragraph (e), has objected to
a waiver or exemption request, the state auditor's office shall set a date for a hearing on the
applications. The hearing must be conducted informally at a time and place determined by all
parties. Persons representing the local government unit shall present their case for the waiver or
exemption, and persons representing the agency or the exclusive representative of the affected
employees shall explain their objection to it. The state auditor may request additional information
from the local government unit or either objecting party. The state auditor may also request,
either before or at the hearing, information or comments from representatives of business, labor,
local governments, state agencies, consultants, and members of the public. If necessary, the
hearing may be continued for a later date. The state auditor may modify the terms of the waiver or
exemption request in arriving at the agreement required under subdivision 5.
    Subd. 5. Conditions of agreements. (a) In determining whether to grant a petition for
a waiver of a rule or exemption from enforcement of a law, the state auditor should consider
the following factors:
(1) whether there is a true and unique impediment under current law to accomplishing the
goal of the local government unit;
(2) granting the waiver of a rule or exemption from enforcement of law will only change
procedural requirements of a local government unit;
(3) the purpose of any rule or law that is waived is still being met in another manner;
(4) granting the proposed waiver of a rule or exemption from enforcement of a law would
result in a more efficient means of providing government services; and
(5) granting the proposed waiver will not have a significant negative impact on other state
government, local government units, businesses, or citizens.
(b) If the state auditor grants a request for a waiver or exemption, the state auditor and the
local government unit shall enter into an agreement providing for the delivery of the service or
program that is the subject of the application. The agreement must specify desired outcomes, the
reasons why the desired outcomes cannot be met under current laws or rules, and the means of
measurement by which the state auditor will determine whether the outcomes specified in the
agreement have been met. The agreement must specify the duration of the waiver or exemption.
The duration of a waiver from an administrative rule may be for no less than two years and no
more than four years, subject to renewal if both parties agree. An exemption from enforcement
of a law terminates ten days after adjournment of the regular legislative session held during the
calendar year following the year when the exemption is granted, unless the legislature has acted
to extend or make permanent the exemption.
(c) The state auditor must report any grants of waivers or exemptions to the legislature,
including the chairs of the governmental operations and appropriate policy committees in the
house and senate, and the governor within 30 days.
(d) The state auditor may reconsider or renegotiate the agreement if the rule or law affected
by the waiver or exemption is amended or repealed during the term of the original agreement.
A waiver of a rule under this section has the effect of a variance granted by an agency under
section 14.055. A local unit of government that is granted an exemption from enforcement of a
procedural requirement in state law under this section is exempt from that law for the duration of
the exemption. The state auditor may require periodic reports from the local government unit, or
conduct investigations of the service or program.
    Subd. 6. Enforcement. If the state auditor finds that the local government unit is failing to
comply with the terms of the agreement under subdivision 5, the state auditor may rescind the
agreement. Upon the rescission, the local unit of government becomes subject to the rules and
laws covered by the agreement.
    Subd. 7. Access to data. If a local government unit, through a cooperative program under
this section, gains access to data collected, created, received, or maintained by another local
government that is classified as not public, the unit gaining access is governed by the same
restrictions on access to and use of the data as the unit that collected, created, received, or
maintained the data.
History: 2005 c 156 art 2 s 4